Biden Administration Mandates Automatic Cash Refunds for Airline Passengers
The Department of Transportation has introduced new rules aimed at enhancing transparency and fairness for airline passengers. Under these rules, airlines will be required to disclose any additional fees for services such as baggage and flight changes upfront. This measure is designed to prevent consumers from being misled by hidden costs and enable them to more effectively compare prices when booking flights.
Additionally, airlines will now be mandated to issue automatic cash refunds for flights that are significantly delayed—over three hours for domestic flights and over six hours for international flights—or canceled. Refunds will also be due for services not rendered, such as Wi-Fi or selected seating, and for baggage fees if luggage is delivered over 12 hours late on domestic flights or within a specified time frame on international flights. The implementation of these rules will be phased in over a period ranging from six months to two years.
The rules are part of a broader initiative by President Joe Biden to address what he refers to as "corporate rip-offs" and are expected to save consumers an estimated $500 million annually. The move follows a surge in complaints about airline refunds during the coronavirus pandemic, leading to a call for clearer guidelines and greater accountability within the airline industry.
